In a 13F filed with the U.S. Securities and Exchange Commission, Julian Robertson’s Tiger Global Management disclosed that it no longer holds a position in the online streaming giant Netflix, Inc. . The hedge fund sold its entire stake in the streaming giant, selling about 18 million shares during the second quarter. At the same time, the investor reported that it reduced its position in Apple Inc. during the last quarter.
Netflix Lost Cooler Factor, Focusing on Asia
Tiger Global first acquired a stake in the streaming company during the fourth quarter of 2014. The company’s stock price has gained 88% by June 30. Share price have dropped by nearly 23% during the past 12 months. The stock is down over 18% year-to-date.
At the end of the first quarter, Tiger Global was holding $1.84 billion worth of shares in Netflix, according to the fund’s first-quarter 13F filing.
Hedge fund betting big on Netflix, Inc. include Viking Global and Coatue Management. Viking held 6.29 million shares, worth more than $575 million, as of June 30. Coatue cut its position in the company by 11% during the second quarter, owning 4.96 million shares, valued at around $454 million.
Liberty Global CEO Mike Fries thinks that Netflix has lost its cool factor, and has stopped being a direct competitor or major threat to pay-TV companies. Speaking at a recent London board meeting, Fries made the claim that Netflix isn’t cool anymore, and this is a positive for pay-TV firms. Although the firm continues to grow all over the world, he feels that the streaming giant’s business model is limited.
Netflix, Inc. , still a big player in the online streaming market, has been facing a growing competition from Hulu, HBO Now, and Amazon Video. The online streaming giant is worried about its subscriber growth in the US and is focusing on the Asian market.
In Apple, Tiger Global reduced its stake by 75% to around 1.38 million shares. The investor sold about 4.28 million shares of the iPhone maker during the second quarter.
Latest filings show that Fisher Asset Management and Adage Capital Management love Apple. Ken Fisher’s hedge fund holds 11.31 million Apple shares, worth about $1.1 billion, and Adage Capital owns 7.47 million shares, worth around $714.13 million, as of June 30.
Shares of Apple Inc. have lost 5.59% during the past 12 months. The stock is up 2.01% for the year. The Cupertino-based company reported its first-ever quarterly decline in iPhone sales and first revenue drop in 13 years in April.
Earlier this year, billionaire investor Carl Icahn unloaded his entire stake in Apple, citing the risk of China’s influence on the stock. “I don’t think anybody can tell you that China is not going to have a problem, even though it might be a very small one,” Icahn told CNBC. He said that China’s government could “come in and make it very difficult for Apple to sell there… you can do pretty much what you want there.”
Icahn, who is concerned about the company’s growth in China, still loves Apple Inc. , in which he had been a prominent investor. The activist investor said “I would get back in if I felt more secure about China” and he thinks that CEO Tim Cook is “doing a good job.”